• PROVISION, CONTINGENT LIABILITIES ANDCONTINGENT ASSETS
Provisions:
Provisions are recognized when there is a present obligation as result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount
of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at
the Balance Sheet date and are not discounted to its present value.
Contingent Liabilities:
Contingent liabilities are not provided for in the books but are disclosed by way of notes in the financial statements when there
is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.
Contingent Assets:
Contingent Assets are neither recognized nor disclosed in the financial statements.
The earnings considered in ascertaining the Company’s earnings per share comprise the net profit after tax (and include post
tax effect of any extraordinary items.) The number of shares used in computing basic earnings per share is the weighted
average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share
comprises of the weighted average number of shares outstanding during the period. The number of shares used in computing
diluted earnings per share comprises of the weighted average shares considered for deriving basic earning per share, and also
the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity
shares.
• RELATED PARTY TRANSACTIONS
Related party transactions are transfer of resources or obligations between related parties, regardless of whether a price is
charged. Parties are considered to be related, if one party has the ability, directly or indirectly, to control the other party of
exercise significant influence over the other party in making financial or operating decisions. Parties are considered to be
related if they are subject to common control or common significant influence.
• SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided by Chief Financial Officer and
Director of the Company jointly and responsible for allocating resources, assess the financial performance of the Company
and make strategic decisions.
The Company has identified one reportable segment “manufacturing of technical textile” based on information reviewed by
them.
• DIVIDEND
Dividend declared is provided in books of account when the same is approved by shareholders.
• EMPLOYEE BENEFITS
- Short-term Obligations:
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service are recognised in respect of employees’ services
up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefit obligations in the balance sheet.
- Post Employee Obligations:
The Company operates the following post-employment schemes:
^ defined benefit plan such as gratuity in which the fund contributions is made to a trust as well as Employee Group
Gratuity Scheme.
^ defined contribution plans such as provident fund.
• Gratuity obligations
The Company had an obligation towards gratuity - a defined benefit retirement plan covering eligible employees. The plan
provides a lump sum payment to vested employees at retirement, death while in employment or on termination of an
employment of an amount equivalent to 15 days salary payable for each completed years of service or part thereof in excess
of six months. Vesting occurs upon completion of five years of service and is payable thereafter on occurrence of any of
above events. The Company has obtained an insurance policy with Life Insurance Corporation of India (LIC) and makes an
annual contribution to LIC for an amounts notified by LIC and also by Company Employee Group Gratuity Scheme.
The cost providing benefit under the defined benefit plan is determined using the projected unit credit method with actuarial
valuation being carried out at each Balance Sheet date, which is recognized in each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit separately to built up the final obligation.
Re-measurements, comprising of actuarial gain or losses, the effect of the asset ceiling, excluding amount included in the net
interest on the net defined liability and the return of the plan assets ( excluding amount included in the net interest on the net
defined benefit liability) are recognized immediately in the Balance Sheet with corresponding debit or credit to retained earning
through Other Comprehensive Income in the period in which they occur. Re-imbursements are not reclassified to the
Statement of Profit and Loss in subsequent period. Past service cost is recognized in the Statement of Profit and Loss in the
period of plan amendment.
Net interest is calculated by applying the discount rate to the net defined benefit liability. The Company recognises the
following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
^ Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements; and
^ Net interest expense
• Defined contribution plans
Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than
the contribution payable to the provident fund. The company recognizes contribution payable to the provident fund scheme as
an expense, when an employee renders the related service. If the contribution payable to the scheme for service received
before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a
liability after deducting the contribution already paid.
• Other long-term employee benefit obligations
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. They are therefore measured as the present value of expected future
payments to be made in respect of services provided by employees up to the end of the reporting period. The obligations are
presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at
least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
• FOREIGN CURRENCY TRANSACTIONS
Initial Recognition:
On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange
rate between the functional currency and the foreign currency at the date of the transaction.
Subsequent Recognition: :
As at the reporting date, non-monetary items which are carried in terms of historical cost denominated in a foreign currency
are reported using the exchange rate at the date of the transaction. All non-monetary items which are carried at fair value or
other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values
were determined. All monetary assets and liabilities in foreign currency are reinstated at the end of accounting period.
Exchange differences on reinstatement of all monetary items are recognised in the Statement of Profit and Loss.
FINANCIAL INSTRUMENTS:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.
• FINANCIAL ASSETS
Initial recognition and measurement :
All financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instrument.
All financial assets are initially measured at fair value plus, in the case of financial assets not recorded at fair value through
profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Subsequent measurement :
Classification
For the purpose of subsequent measurement, the Company classifies financial assets in following categories:
Financial assets at amortised cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. The
amortized cost is reduced by impairment losses, if any. Interest income and impairment are recognized in the Statement of
Profit and Loss.
Financial assets at fair value through other comprehensive income (FVTOCI)
These assets are subsequently measured at fair value through other comprehensive income (OCI). Changes in fair values are
recognized in OCI and on derecognition, cumulative gain or loss previously recognized in OCI is reclassified to the Statement
of Profit and Loss. Interest income calculated using EIR and impairment loss, if any, are recognized in the Statement of Profit
and Loss.
Financial assets at fair value through profit or loss (FVTPL)
These assets are subsequently measured at fair value. Net gains and losses, including any interest income, are recognized in
the Statement of Profit and Loss.
Financial assets are not reclassified subsequent to their recognition except if and in the period the Company changes its
business model for managing for financial assets.
• De-recognition
The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it
transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of
ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the
risks and rewards of ownership and it does not retain control of the financial asset.
If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or
substantially all of the risks and rewards of the transferred assets, the transferred assets are not de-recognised.
Any gain or loss on de-recognition is recognised in the Statement of Profit and Loss.
• FAIR VALUE MEASUREMENT
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date. Fair value is the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:
^ In the principal market for the asset or liability, or
^ In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-fnancial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its
highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a
whole:
^ Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
^ Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable
^ Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable .
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period. For the purpose of fair value
disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of
the asset or liability and the level of the fair value hierarchy as explained above.
FSDFS
The management assessed that fair value of cash and short-term deposits, trade receivables, trade payables, and other current financial assets and
liabilities approximate their carrying unts largely due to the short-term maturities of these instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
i) Long-term fixed-rate receivables/borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors,
individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into
account for the expected losses of these receivables.
ii) Fair values of the Company’s interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuer’s
borrowing rate as at the end of the reporting period. The own non- performance risk as at March 31, 2025 was assessed to be insignificant.
iii) The fair values of the unquoted equity shares, if any have been estimated using a discounted cash flow model. The valuation requires management to
make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility, the probabilities of the various
estimates within the range can be reasonably assessed and are used in management's estimate of fair value for these unquoted equity investments.
Financial Risk Management
The Company’s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is
to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include loans, trade
and other receivables, and cash and short-term deposits that derive directly from its operations.
The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk, foreign currency risk and interest rate risk. The Company's
The Board of Directors rev iews and agrees policie s fear managing each of the se risks, wh ich are summarise d below:
Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations,
and arises principally from the Company’s receivables from customers and investment securities. Credit risk arises from cash held with banks and
financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to
the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company
assesses the credit quality of the counter parties, taking into account their financial position, past experience and other factors.
Trade and other receivables
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer,
including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. In addition,
receivable balances are monitered on an ongoing basis with the result that the Company's exposure to Bad debt is not significant. Also the Company
doesnot enter into sales transaction with customers having credit loss history. There are no significant Credit risk with related parties of the Company.
The Company's is exposed to Credit risk in the event of non payment of customers. Credit risk concentration with respect to Trade Receivables is
mitigated by the Company's large customer base. Adequate expected credit losses are recognised as per the assessment.
The history of Trade receivables shows an allowance forbad and doubtful debts ofRs Nil (Nil as at March 31,2025). The Company has made allowance
of Rs Nil ( Nil as at March 31,2024) against Trade receivable of Rs. 13474.61 Lakhs ( Rs. 10271.17 Lakhs as at March 31,2024).
Bank Deposits
The company maintains its cash and cash equivalents and bank deposits with reputed and highly rated bank. Hence, there is no significant credit risk
on such deposits.
Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The
company does not expect any losses fromnon- performance by these counter-parties, and does not have any significant concentration of exposures to
specific industry sectors.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk
through credit limits with banks.
The Company’s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and
policies related to such risks are overseen by senior management.
35 Foreign Currency risk
The Company’s exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in U.S. dollars and British pound
sterling ) and foreign currency borrowings (primarily in U.S. dollars ). A significant portion of the Company’s revenues and cost are in these foreign
currencies, while balance portion of costs are in Indian rupees. As a result, if the value of the Indian rupee appreciates relative to these foreign
currencies, the Company’s revenues measured in rupees may decrease. The exchange rate between the Indian rupee and these foreign currencies has
changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company's management meets on a periodic basis
to formulate the strategy for foreign currency risk management.
Consequently, the Company management believes that the borrowings in foreign currency and its assets in foreign currency shall mitigate the foreign
currency risk mutually to some extent.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The
Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates and
investments.
Interest rate sensitivity analysis
If interest rates had been 1% higher and all other variables were held constant, the company’s profit for the year ended would have impacted in the
following manner:
46 Additional regulatory information
(a) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year
(b) Capital Work in Progress Ageing Schedule Refer Note No. 2
(c) There are no Intangible Assets under development As at 31-Mar-2025
(d) No proceeding have been initiated nor pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act,1988 (45 of 1988) and rules made thereunder.
(e) The Company have sanctioned borrowings/facilities from banks on the basis of security of current assets. The quarterly returns
or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of
accounts.
(f) The Company is not declared Willful Defaulter by any Bank or Financial Institution or Other Lender.
(g) The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956.
(h) No Charges or satisfaction of charges are yet to be registered with registrar of companies beyond the statutory period.
(i) The Company has complied with the number of layers prescribed Under Clause (87) of Section 2 of the act read
with Companies (Restriction on Number of Layers) Rules, 2017.
(j) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013.
(k) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or
kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security
or the like to or on behalf of the Ultimate Beneficiaries.
(l) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the company shall directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(m) No Transactions has been surrendered or disclosed as income during the year in the taxassessment under the income tax act,
1961. There are no such previously unrecorded income or related assets.
(n) Corporate Social Responsibility (CSR) : Refer Note No. 42
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per requirement of
47
Schedule - III, unless otherwise stated.
48 Previous Year’s figures have been regrouped, rearrange, reclassified wherever necessary to correspond with the current year
classification / disclosure.
As per our report of even date For and on behalf of the Board of Directors
For S V J K And Associates Shri Jagdamba Polymers Limited
Charterd Accoutants
Firm’s Registration No :- 135182W
Reeturaj Verma Ramakant Bhojnagarwala Kiranbhai B Patel
Partner Managing Director Whole-Time Director
Membership Number :- 193591 DIN -00012733 DIN -00045360
UDIN : - 25193591BMJGJW8853
Place: Ahmedabad Anil Parmar Dharmistha Kabra
Date : 28/05/2025 Chief Financial Officer Company Secretary
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